Chapter 64: The Huge Consulting Fee

[Chapter 64: The Huge Consulting Fee]

Of course, Kirk couldn't afford it. In fact, Charlie himself couldn't afford it. The record company in question owned Tupac's recordings. Since Tupac had passed away, they were rushing to release more on the market to make some profit off the deceased. It's well known that sometimes the dead make more money than the living.

At the moment, Charlie wasn't in a position to profit from the deceased. But this company was bound to be taken over sooner or later. If they stripped out Tupac's most profitable record rights, Charlie would have a strong chance to take care of the remaining part.

Only one problem remained: Charlie was white, without any black bloodline. Having him personally run a record label specializing in gangsta rap -- an area tied closely to the black community -- was not very appropriate.

Finding someone to take over was a good idea. After much thought, Charlie approached Kirk.

Currently, as the "victim," Charlie could use certain methods to acquire Death Row Records with Tupac's rights excluded. He would get a stake. His plan was to sell this invitation, bring in the bank, and Kirk's network of influence.

After consulting a lawyer, the plan was as follows:

First, mortgage the yet-to-be-acquired Death Row Records to get about $37 million, using that to buy the company outright.

Then flip 80% of Death Row Records shares to Kirk for $40 million.

The remaining 20%, priced at $10 million plus a long-term film soundtrack licensing agreement, would be sold to Corleone Studios.

Charlie, on behalf of the copyright company, would collect a $12 million consulting fee -- $5 million in cash, $7 million as an IOU.

Corleone Studios would increase its liabilities by $10 million owed to the copyright company.

From the $37 million borrowed from the bank, $30 million would be paid to Death Row shareholders. $7 million would be allocated for other consultants.

Afterwards, Charlie and Kirk would sign a $7 million film fund investment agreement, paid for by borrowing from Corleone Copyright Management.

The copyright management company would invest $5 million cash, combine that with Kirk's $7 million owed, and Corleone Studios' $10 million liabilities, to invest in the film fund.

This way, on paper, Charlie would own a film group with music distribution channels and partial record company shares, plus a film fund of $18.5 million. Adding in the distribution contracts, the asset value would surge.

For the record share purchase agreement, Charlie would demand Miramax, based on the shareholder structure, to pay the copyright company $3.5 million in cash.

If payment was not made--

Obvious that Harvey likely would refuse -- then these debts would be transferred to the film fund's account. As a result, the film fund would appear to have $22 million in financing on paper.

Apart from $5 million in cash, all the rest would become costs for upcoming films.

Kirk would have a record company that had signed cooperation agreements with a film company, and a non-refundable $7 million film fund investment agreement.

However, he would owe the bank $37 million and have to pay $5 million in cash.

Charlie spoke for half an hour. Kirk's scalp tingled as sweat beaded his shiny forehead like a light bulb.

Not to mention Kirk and Ophir looked utterly confused.

As for Kirk's underlings and Mord, they seemed completely spaced out.

Trying to focus for a moment, luckily Kirk was experienced in business. He shook his head with a bitter smile, "Man, you almost confused me there. So I have to put up $5 million cash and take on at least $37 million in debt? This price is way too high."

"Too high? It's already very cheap," Charlie smiled faintly. "Don't forget, I already waived your $7 million in capital, which is locked in the film fund. With some luck, you'll make big money."

Kirk took a deep drag, stubbed out the cigarette, "No way! If it makes a dime, I still have to cover that $7 million. Look, Godfather, this price is too steep. Even with all my assets, cash, and bank mortgage channels, I can only come up with less than $9 million cash. If I get the record company, I must keep enough cash for daily operations."

"So I left you four or five million," Charlie said calmly with a faint smile.

"You even thought of that? Oh man, doing business with you is..." Suddenly Kirk's expression darkened, "You've taken $22 million from this deal overall. I don't understand the paper accounting, but using those paper funds to invest and consume movies will squeeze shares from other investors and distributors. Being the middleman and making this much is outrageous."

"I only took $5 million in consulting fees. The rest was to prop up my film fund," Charlie said impatiently. "The price is fair. Have you heard about Michael Ovitz helping Sony acquire Columbia and Panasonic acquire Universal? How much consulting fees did he get?"

Kirk was stunned.

Who was Michael Ovitz? And who was Charlie?

Ovitz was a Hollywood supermogul! Even so, for transactions totaling over $3 billion, consulting fees didn't exceed $40 million back then.

Damn, this shameless little bastard. Did he really think he was the Godfather? Even the Godfather in the movies wouldn't work as a middleman and greedily take this much money!

Kirk cursed silently. After a pause, frowning, he said, "Charlie, I still can't accept this price. Also, that $7 million IOU to the film fund -- I suspect you'll do something with it later, squeeze us with some tactics..."

Charlie said seriously, "We can put it in the contract: if you don't demand returns, I won't require actual investment entry."

"Well..." Kirk saw Charlie was firm but remained hesitant. This was a major life change; decisions weren't easy.

At that moment, a soft voice from the bar's stage sang, ♫I hurt myself today

To see if I still feel

I focus on the pain

The only thing that's real...♫

Charlie glanced and lightly tapped the wooden table, loudly said, "Damn it, I'm in a good mood today. Don't let me hear such a depressing song. Change it!"

Squinting at Kirk, he smiled, "Think carefully. Acquiring Death Row Records will instantly make you a socially influential big businessman. The gangsta rap market is about to have a new wave of opportunity; this company won't lose money. Also, with Corleone Studios' distribution share agreements, I will work hard to make the movies succeed, which will push soundtrack sales. It might not make a huge profit, but it won't lose much either. You should have seen my ability in films."

'Doing this, for the next few years, I'll have to work for the bank and you. What a greedy bastard!' Kirk cursed inside, looking grim, "I think I need time to consider. This isn't a small deal; it concerns my whole life!"

Charlie shrugged and finished his last sip, burped. His flushed, slightly tipsy body swayed lightly as he stood, looked down with a smile, "No problem, you have three days to think it over! Oh, Kirk, I heard from someone that before Jada attacked me, she might have had some contact with you. She had trouble tracking me then. Also, Tupac had some dealings with you too."

He straightened, laughed heartily, "Think it over, get back to me quickly; I don't have much time. Once you decide, Officer Ophir will want to consult with you, some Death Row and Bloods gang issues."

"Bang!"

Charlie turned sharply and slammed the table again, glaring at the graceful figure on the stage, shouting impatiently, "I said change the song, so why are you still singing the same song? You mocking me as Forrest, some fool?"

*****

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